Ministry of Labour: 94.6% of pensioners will receive increases – See detailed examples

Increases to 94.6% of pensionersdouble increases to almost 1.3 million pensioners, triple increases to about 100,000 and an additional pension to 1 in 2 pensioners result from the analysis of the data completed by the e-EFKA services and which take into account all upcoming salary increases which are to be implemented gradually from the end of 2022.

As announced by the Ministry of Labour, the following conclusions emerge from the analysis:

The vast majority of pensioners, namely 2,472,939 out of a total of 2,613,747 (94.6%) will see one, two or even three increases in their income. In fact, the increases are such as to ensure that 1 in 2 pensioners will receive at least one additional pension (many and amounts larger than an additional pension). These increases result from:
• from the “unfreezing” of regular increases from the beginning of 2023, which will be around 7%,
• from the abolition of the special solidarity levy,
• from the payment of the extraordinary financial aid of 250 euros at the end of this year,
• from the payment of the 4th annual installment, provided for in Vroutsis law, for pensioners who applied before May 2016 with more than 30 years of insurance.

In detail, the increases and the number of beneficiaries are distributed as follows:

1) An increase of 7% will be seen by 1,682,116 pensioners. Of those, 80%-85% will see a full 7% increase, while the vast majority of the rest will see increases in excess of 6.5%, depending on how much personal difference they have.
2) 841,717 pensioners will see the abolition of the special solidarity levy (the number is expected to increase, as all pensioners’ tax returns have not yet been cleared by AADE).
3) 1,194,806 pensioners will receive the emergency aid of 250 euros.
4) 222,570 pensioners will receive the 4th annual increase of V. Vroutsis.
From the analysis of the individual categories of pensioners, single, double or even triple increases result.

Specifically:

– 2,472,939 pensioners will see at least one increase (due to the 7% increase or the abolition of the solidarity contribution or the payment of the 250 euro allowance).
– 1,273,440 pensioners will see a double increase (due to the combination of the 7% increases, the abolition of the solidarity contribution or the payment of the extraordinary financial aid of 250 euros).
– a triple increase will be seen by 97,415 pensioners (due to the combination of the 7% increase, the abolition of the solidarity levy or the payment of the extraordinary financial aid of 250 euros and the application of the 4th annual increase of Vroutsis).

The above categories of beneficiaries are divided as follows:

1) 1,682,116 pensioners will benefit from the horizontal increase of 7%.
2) A double increase (increase of the order of 7% and an increase through the abolition of the special solidarity contribution) will see 244,124 pensioners.
3) 904,161 pensioners will see a double increase (increase of the order of 7% and payment of the extraordinary financial aid of 250 euros).
4) 25,278 pensioners will see a triple increase (increase of the order of 7%, payment of the extraordinary financial aid of 250 euros and the 4th annual increase of Vroutsis).
5) A triple increase (increase of the order of 7%, increase through the abolition of the special solidarity levy and 4th annual increase of Vroutsis) will be seen by 72,137 pensioners.

For the 931,631 pensioners, who have a large personal difference, it turns out that 88% of them will also see increases in their salaries. Specifically:
1) Through the abolition of the special solidarity contribution, 525,456 pensioners with a large personal difference will see increases. At the same time, they will see a significant reduction in their personal difference,
2) Through the payment of the extraordinary financial aid of 250 euros, 265,367 pensioners will see increases in their salaries and, at the same time, a significant reduction in their personal difference.

In conclusion:

– In total, 94.6% of pensioners will see one, two or even three increases in their earnings.
– Almost 1.3 million pensioners will see double increases.
– 1 in 2 pensioners, with the combination of the above increases, will receive at least one additional pension.
– 88% of those with a large personal difference will also see increases through the abolition of the special solidarity levy and the payment of the 250 euro aid.

The Minister of Labor and Social Affairs, Kostis Hatzidakis, said: “The analysis of the data by the EFKA services solemnly refutes those who rushed to claim that the increases in pensions will affect only 1 in 3 pensioners. 94.6% of the 2.6 million pensioners will see a single, double or even triple increase in their earnings! While 88% of those with a personal difference will also see their incomes increase. In addition, 1 in 2 pensioners and especially the low pensioners will actually see their earnings increase by an additional pension or more. It is yet another practical support of their incomes and a resounding response to those who stubbornly deny reality. The Government is exhausting the possibilities of the budget for pensioners, while SYRIZA, which only made cuts through the Katrougalos Law and other negative interventions, is once again deploying lies, political hypocrisy and demagogic promises”.

Examples of increases:

Example 1

With an increase: Pensioner who receives 850 euros per month. In the hypothetical scenario that the increases will close at 7%, the monthly benefit he will have will be approximately 59.5 euros, while the annual benefit will be 714 euros. In other words, it will reach 80% of an additional pension.

Example 2

With a double increase: A pensioner currently receives a pension of 900 euros and declares income from other sources of 6,200 euros in total per year. With the hypothetical scenario of a 7% increase in pensions and the benefit from the abolition of the special solidarity levy, the total annual benefit amounts to 822 euros (756 euros from the 7% increase and 66 euros from the abolition of the special levy). In other words, the annual benefit exceeds 90% of an additional pension.

Example 3

With a double increase: A pensioner receives 750 euros per month. In the hypothetical scenario that the increases will close at 7%, the monthly benefit he will have will be around 52.5 euros, while the annual benefit will be 630 euros. At the same time, the pensioner is also entitled to the extraordinary aid of 250 euros as his pensionable earnings do not exceed 9,600 euros per year. With the calculation of both increases in his earnings, it follows that the total annual benefit amounts to 880 euros, far exceeding an additional pension.

Example 4

With a triple increase: A pensioner who submitted a pension request before May 2016, with more than 30 years of insurance, receives 514 euros per month. With the hypothetical scenario of the 7% increase, his monthly benefit from this increase will be 36 euros and the annual benefit will be 432 euros. At the same time, he will receive an additional increase of 2.83% due to the 4th annual increase provided for in Vroutsis based on the improved replacement rates, i.e. an additional 174 euros per year. Due to his low income (below 9,600 euros) he will also receive the aid of 250 euros. Therefore, with the combination of the above three increases, it follows that his total annual benefit amounts to 856 euros. He will therefore see a full additional pension but also 65% of a 2nd additional pension.

Example 5

With a double increase: A pensioner with monthly benefits of 1,100 euros, with the hypothetical scenario of a 7% increase in pensions, will see a monthly benefit of 77 euros and an annual benefit of 924 euros. Due to the abolition of the special solidarity levy, he will see an additional annual benefit of 66 euros. The total annual benefit amounts to 990 euros, reaching 91% of an additional pension.

Example 6

Increases despite the existence of a significant personal difference. A pensioner with a negative personal difference of 70 euros receives a net monthly pension of 560 euros. The 7% increase significantly reduces the personal difference but does not overcome it. Due to an income below 9,600 euros a year, the pensioner will receive the extraordinary financial aid of 250 euros and at the same time will see his negative personal difference reduced by 37 euros and will be able to see faster real increases in his pocket in the future.

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